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Depleted cattle herds push beef prices to near record levels

June 20, 2023 from The Food Dive:

• "Depleted cattle herds have pushed up beef prices, eating into meatpacker profits as they struggle to fully pass along the costs to inflation-wary consumers.
• "Prices for fed cattle, or cows that are large enough to be slaughtered and put in the market, reached a record for the week ending June 4, according to a USDA report Thursday. Meanwhile, prices for younger, feeder cattle at the Oklahoma City National Stockyards were up nearly $52 in May compared to a year ago.
• "Cattle stocks have remained low due to persistent drought conditions across the U.S., pushing up consumer prices close to the record set during the pandemic, per data from the Bureau of Labor Statistics.

"Around 40% of the U.S. beef herd still remained under drought conditions as of the week of June 6, according to the USDA. However, recent rainfall and lower feed prices have allowed production to increase at a faster-than-expected rate.

"The USDA raised its beef production outlook in June, although production is still expected to decline more than 8% in 2024. Packing plants will need to compete for a smaller supply of slaughter-ready cattle to fill their schedules, the agency said."